Comstock Resources, Inc. (CRK) Bundle
A Brief History of Comstock Resources, Inc.
Comstock Resources, Inc. (NYSE: CRK) has undergone significant transformations since its inception. Founded in 1910, the company has evolved from a small exploration firm into a significant player in the natural gas and oil industry, primarily focusing on the Haynesville Shale region in Louisiana and Texas.
Financial Performance Overview
As of September 30, 2024, Comstock reported a net loss of $163.4 million for the nine months ended September 30, 2024, translating to a loss of $0.57 per share. This is a stark contrast to a net income of $103.5 million, or $0.37 per share, for the same period in 2023. The loss from operations for the first nine months of 2024 was $166.7 million.
| Period | Net Income (Loss) ($ millions) | Net Income (Loss) per Share ($) | Loss from Operations ($ millions) |
|---|---|---|---|
| Q3 2024 | (25.7) | (0.09) | (61.3) |
| Q3 2023 | 14.7 | 0.05 | — |
| 9 months 2024 | (163.4) | (0.57) | (166.7) |
| 9 months 2023 | 103.5 | 0.37 | 175.8 |
Production and Sales Data
In terms of production, Comstock reported natural gas production of 403.4 billion cubic feet (Bcf) for the first nine months of 2024, a 5% increase from 383.9 Bcf in the same period of 2023. The average realized price of natural gas decreased to $1.87 per Mcf in 2024 from $2.37 per Mcf in 2023.
| Metric | 9 months 2024 | 9 months 2023 |
|---|---|---|
| Natural Gas Production (Bcf) | 403.4 | 383.9 |
| Average Price (Natural Gas, $/Mcf) | 1.87 | 2.37 |
Revenue Performance
Comstock's total revenues for the first nine months of 2024 were $887.1 million, down from $1.154 billion in 2023. This decline was largely attributed to lower natural gas prices and decreased sales volume.
| Revenue Source | 9 months 2024 ($ millions) | 9 months 2023 ($ millions) |
|---|---|---|
| Total Revenues | 887.1 | 1,154.5 |
| Natural Gas Sales | 756.3 | 911.1 |
| Oil Sales | 2.9 | 4.1 |
| Gas Services Revenue | 127.9 | 239.4 |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, net cash provided by operating activities was $353.3 million, down from $788.6 million in 2023. Capital expenditures for the same period totaled $788.5 million, with significant investments in drilling and completion activities.
| Cash Flow Component | 9 months 2024 ($ millions) | 9 months 2023 ($ millions) |
|---|---|---|
| Net Cash from Operating Activities | 353.3 | 788.6 |
| Total Capital Expenditures | 788.5 | 1,103.5 |
Debt and Interest Expenses
As of September 30, 2024, Comstock had approximately $3.0 billion in long-term debt, with interest expenses for the nine months of $156 million. The company has been actively managing its debt portfolio through the issuance of senior notes.
| Debt Metric | Amount ($ millions) |
|---|---|
| Total Long-term Debt | 3,000 |
| Interest Expenses (9 months 2024) | 156.0 |
Market Conditions and Future Outlook
Comstock's performance is closely tied to fluctuations in natural gas prices, which have seen a significant decline in 2024 compared to previous years. The company has implemented various risk management strategies, including the use of derivative contracts to hedge against price volatility. The outlook for Comstock will depend on market recovery and effective management of operational costs.
A Who Owns Comstock Resources, Inc. (CRK)
Major Shareholders
As of 2024, the majority shareholder of Comstock Resources, Inc. is Jerry Jones, who controls approximately 71% of the company's shares after a private placement of 12.5 million shares in March 2024. This issuance brought his beneficial ownership from 67% to 71%.
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Jerry Jones | 71% | Majority Shareholder |
| Institutional Investors | Approximately 25% | Institutional Holdings |
| Retail Investors | Approximately 4% | Individual Holdings |
Institutional Ownership
Institutional investors own around 25% of Comstock Resources, Inc. Key institutional shareholders include:
- BlackRock, Inc. - 10.5% ownership
- The Vanguard Group, Inc. - 8.2% ownership
- State Street Corporation - 5.4% ownership
Insider Ownership
Insider ownership, which includes executives and board members, is significant, with approximately 15% of shares held by insiders. Key insiders include:
- Jerry Jones - Majority Stockholder
- Management Team - Various holdings
Recent Stock Issuance
In March 2024, Comstock Resources issued 12,500,000 shares of common stock, raising approximately $100.5 million for operational activities, primarily to pay down debt.
Current Market Data
As of September 2024, Comstock Resources has a market capitalization of approximately $1.6 billion. The company's stock is traded on the NYSE under the ticker symbol CRK.
| Metric | Value |
|---|---|
| Market Capitalization | $1.6 billion |
| Current Stock Price | $5.50 |
| 52-Week Range | $4.00 - $8.00 |
Financial Performance Overview
For the nine months ending September 30, 2024, Comstock Resources reported:
- Natural Gas and Oil Sales: $759.2 million
- Net Loss: $163.4 million
- Earnings per Share (EPS): $(0.57)
In comparison, for the same period in 2023, the company reported:
- Natural Gas and Oil Sales: $915.2 million
- Net Income: $103.5 million
- Earnings per Share (EPS): $0.37
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Natural Gas and Oil Sales | $759.2 million | $915.2 million |
| Net Income (Loss) | $(163.4 million) | $103.5 million |
| Earnings per Share (EPS) | $(0.57) | $0.37 |
Conclusion on Ownership Structure
The ownership structure of Comstock Resources, Inc. as of 2024 reflects a concentrated ownership model with Jerry Jones as the majority shareholder, complemented by significant institutional investment. The recent stock issuance has strengthened the company's financial position, although it has faced challenges with profitability amid fluctuating natural gas prices.
Comstock Resources, Inc. (CRK) Mission Statement
Overview
Comstock Resources, Inc. (CRK) focuses on the acquisition, exploration, and development of oil and natural gas properties. As of 2024, the company's mission statement emphasizes its commitment to sustainable energy production through the efficient and responsible extraction of natural resources while enhancing shareholder value.
Financial Performance
In the third quarter of 2024, Comstock reported natural gas and oil sales of $253.6 million, a decrease of 17% compared to $305.5 million in the same quarter of 2023. The decline was primarily attributed to lower natural gas prices realized in 2024.
The following table summarizes key financial metrics for the third quarter and the first nine months of 2024 compared to the same periods in 2023:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Natural Gas Production (Bcf) | 133.1 | 130.5 | 403.4 | 383.9 |
| Average Natural Gas Price (per Mcf) | $1.90 | $2.33 | $1.87 | $2.37 |
| Total Revenues ($ million) | $304.5 | $376.7 | $887.1 | $1,154.5 |
| Net Income (Loss) ($ million) | ($25.7) | $14.7 | ($163.4) | $103.5 |
Capital Expenditures
Comstock's capital expenditures for the first nine months of 2024 totaled $788.5 million, a decrease from $1,103.5 million in 2023. This reflects a reduction in drilling and completion activities. The breakdown of capital expenditures is as follows:
| Type | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|
| Unproved Property Acquisitions | $87.9 | $76.6 |
| Exploratory Drilling | $215.9 | $179.0 |
| Development Drilling | $411.3 | $740.8 |
| Other Development Costs | $22.2 | $18.9 |
Debt and Equity Financing
As of September 30, 2024, Comstock had $2.95 billion in long-term debt. The company issued $400 million in senior notes due 2029 in April 2024, receiving net proceeds of $365.2 million after offering costs.
Liquidity Position
Comstock's liquidity as of September 30, 2024, was reported at $1.1 billion, which includes $1.08 billion of unused borrowing capacity under its bank credit facility and $13.8 million in cash and cash equivalents.
Environmental Responsibility
Comstock aims to operate with a strong focus on environmental stewardship, seeking to minimize the impact of its operations. The company employs various technologies to enhance the efficiency of resource extraction and reduce emissions.
Conclusion of Mission Statement
Comstock Resources, Inc. continues to align its operations with its mission statement by focusing on sustainable practices in energy production while delivering value to its shareholders through strategic financial management and operational excellence.
How Comstock Resources, Inc. (CRK) Works
Company Overview
Comstock Resources, Inc. (CRK) primarily engages in the exploration and production of natural gas and oil in the United States, focusing on the Haynesville and Bossier shale formations.
Financial Performance
As of September 30, 2024, Comstock reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Natural Gas Sales ($ millions) | $252.7 | $304.1 | $756.3 | $911.1 |
| Oil Sales ($ millions) | $1.0 | $1.3 | $2.9 | $4.1 |
| Total Revenues ($ millions) | $304.5 | $376.7 | $887.1 | $1,154.5 |
| Net Income (Loss) ($ millions) | ($25.7) | $14.7 | ($163.4) | $103.5 |
| Earnings Per Share (EPS) | ($0.09) | $0.05 | ($0.57) | $0.37 |
Production Metrics
Comstock's production data for the third quarter and the first nine months of 2024 are as follows:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Natural Gas Production (Bcf) | 133.1 | 130.5 | 403.4 | 383.9 |
| Oil Production (MBbls) | 13 | 17 | 40 | 57 | Natural Gas Equivalent Production (MMcfe) | 133.2 | 130.6 | 403.7 | 384.2 |
Cost Structure
The following table summarizes Comstock's operating expenses:
| Expense Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|---|---|
| Production and Ad Valorem Taxes | $12.6 | $25.4 | $49.7 | $59.9 |
| Gathering and Transportation | $54.0 | $47.0 | $150.5 | $138.0 |
| Lease Operating Expense | $29.2 | $31.7 | $99.1 | $100.5 |
| Depreciation, Depletion, and Amortization | $208.4 | $148.2 | $593.3 | $422.4 |
Cash Flows Analysis
The following table details the sources and uses of cash for the nine months ended September 30, 2024:
| Source / Use | 2024 ($ thousands) | 2023 ($ thousands) |
|---|---|---|
| Operating Activities | $353,284 | $788,639 |
| Issuance of Senior Notes | $372,000 | $0 |
| Capital Expenditures | $788,537 | $1,103,527 |
| Dividends Paid | $0 | $104,181 |
Liquidity Position
As of September 30, 2024, Comstock had:
- Liquidity of approximately $1.1 billion, comprised of:
- $1,085 million in unused borrowing capacity under its bank credit facility.
- $13.8 million in cash and cash equivalents.
Debt and Equity Structure
Comstock's debt and equity details as of September 30, 2024:
| Debt Type | Amount ($ millions) |
|---|---|
| Long-term Debt | $2,949.2 |
| Senior Notes (5.875% due 2030) | $965.0 |
| Total Stockholders' Equity | $2,362.0 |
Market Risk Management
Comstock employs derivative financial instruments to manage price risks associated with natural gas. As of September 30, 2024, they had:
- Natural gas price swaps hedging approximately 64.4 Bcf of 2024 production at an average price of $3.54 per MMBtu.
- Natural gas collars hedging approximately 54.8 Bcf of 2025 production with an average ceiling price of $3.80 and floor price of $3.50.
How Comstock Resources, Inc. (CRK) Makes Money
Revenue Streams
Comstock Resources, Inc. primarily generates revenue through the production and sale of natural gas and oil. In the third quarter of 2024, the company reported:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Natural Gas Sales | $252.7 | $304.1 | -17% |
| Oil Sales | $1.0 | $1.3 | -25% |
| Total Natural Gas and Oil Sales | $253.6 | $305.5 | -17% |
| Gas Services Revenue | $50.8 | $71.3 | -29% |
| Total Revenue | $304.5 | $376.7 | -19% |
Production Data
In terms of production, Comstock Resources reported the following figures for the third quarter of 2024:
| Production Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Natural Gas Production (Bcf) | 133.1 | 130.5 | +2% |
| Oil Production (MBbls) | 13 | 17 | -24% |
Price Realization
The average realized prices for natural gas and oil during the third quarter of 2024 were:
| Commodity | Q3 2024 Average Price | Q3 2023 Average Price |
|---|---|---|
| Natural Gas (per Mcf) | $1.90 | $2.33 |
| Oil (per Bbl) | $75.00 | $77.00 |
Costs and Expenses
Comstock's operating expenses for Q3 2024 included:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Production and Ad Valorem Taxes | $12.6 | $25.4 | -50% |
| Gathering and Transportation | $54.0 | $47.0 | +15% |
| Lease Operating Expenses | $29.2 | $31.7 | -8% |
| Depreciation, Depletion, and Amortization | $208.4 | $148.2 | +40% |
| General and Administrative | $9.9 | $9.6 | +3% |
Financial Performance
For the third quarter of 2024, Comstock reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $(25.7) million | $14.7 million |
| Loss Per Share | $(0.09) | $0.05 |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow sources and uses were:
| Source / Use | Amount (in thousands) |
|---|---|
| Operating Activities | $353,284 |
| Issuance of Senior Notes | $372,000 |
| Common Stock Issuance | $100,450 |
| Capital Expenditures | $(788,537) |
| Total Cash Used | $(865,845) |
Debt and Liquidity Position
As of September 30, 2024, Comstock had:
| Debt Metric | Amount (in millions) |
|---|---|
| Total Long-term Debt | $2,949.2 |
| Liquidity (Cash + Credit Facility) | $1,098.8 |
Derivatives and Risk Management
In Q3 2024, Comstock reported net gains on derivative financial instruments of:
| Instrument Type | Q3 2024 Gain (in millions) | Q3 2023 Gain (in millions) |
|---|---|---|
| Net Gains on Derivatives | $75.2 | $14.3 |
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Article updated on 8 Nov 2024
Resources:
- Comstock Resources, Inc. (CRK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Comstock Resources, Inc. (CRK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Comstock Resources, Inc. (CRK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.